The U.S. economy contracted 1.4 percent in the first quarter, new Bureau of Economic Analysis (BEA) data show. The market had forecast growth of 1.1 percent.
This is the first time the world’s largest economy experienced negative growth since the second quarter of 2020.
According to the BEA, the decline in the GDP was driven by a drop in private inventory investment, exports, and federal, state, and local government spending. Imports rose in the three months ending in March.
In addition, residential and non-residential fixed investment increased, while personal consumption expenditures (PCE) also rose.
Personal income advanced $268 billion in the first quarter, while disposable personal income climbed to $216.6 billion. The personal savings rate tumbled to 6.6 percent, down from 7.7 percent in the previous quarter.
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